Wegman Case Essay

1070 words - 5 pages

Team
2:
Whole
Foods
Presenta8on,
NBA
5330
Management
Cases
2/18/2013
Kevin
Bell,
Jen
Cohen,
MaE
De
Paolo,
Sarah
Hu,
Aashish
Sharma

Whole
Foods
should
acquire
Wild
Oats
and
increase
its
product
oﬀerings
to
enable
lifestyle
shopping
and
maintain
its
leadership
posi:on

Whole
foods
currently
is
the
leader
in
the
natural-‐ food
retail
chain
and
the
fastest
growing
company
in
the
grocery
market

•  Natural
food
segment
growing ...view middle of the document...

E.B
Kroger’s
Costco

Traders
Joe
Safeway
Low
Cost

Low
#
of
SKU’s

Summary strategy Consumer segments Competition opportunities Conclusion

US
Natural
Food
oﬀerings
are
being
penetrated
by
conven:onal
stores
that
oﬀer
non-‐natural
foods
as
well

2003
50%
50%

US
Food
Retailing
Business
US
Natural

Conven8onal
Store
Format:
Kroger's,
Albertson's,
Safeway,
WalMart
Specialist
Health
&
Natural
Product:

Whole
Foods,
Wild
Oats,
Trader
Joes

Since
1991,
conven8onal
store
sales
of
natural
foods
have

moved
from
7%

to
50%
market
share

Consumer segments

Summary

strategy

Competition

opportunities

Conclusion

Within
the
value
chain,
the
retail
segment
oﬀers
the
best
margin
and
poten:al
for
expansion

Lower
margins

Distributors

Opportuni:es:
Limit
supplier
power
in
a
highly
consolidated
industry
through
backward
integrate
and
reduce
delivery
8me
of
perishable
goods
by
elimina8ng
the
middle
man
Limita:ons:
Could
threaten
rela8onship
with
current
distributors
by
becoming
their
compe8tors
Opportuni:es:

Display
social
responsibility
that
consumers
will
buy,
diﬀeren8ate
and
redeﬁne
themselves,
increased
demand
from
customers
Limita:ons:
Taking
8me
to
learn
organic
process
standards
Opportuni:es:
Thought
leadership
in
the
industry,
inﬂuencing
more
stringent

regula8on
standards

Producers

Retailers

Higher
margins

Consumer segments

Limita:ons:
Will
poten8ally
create
new
challenges
in
mee8ng
this
standards
and
ﬁnding
producers
or
distributors
who
meet
them
as
well

Summary

strategy

Competition

opportunities

Conclusion

Whole
Foods
faces
challenges
from
alterna:ve
channels
such
as
conven:onal

grocers
and
discount
stores
due
to
lower
pricing
and
convenience
factors

Conven8onal
Grocers
Discounters/
Warehouse
Clubs
Neighborhood
Delicatessens

•  More
diverse
oﬀering
of
product
categories
•  Easier
access
to
the
periphery
of
organic
consumers

•  Low-‐cost
opera8ng
structures,
limited
SKUs
•  Larger
...

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